Historical corporate income tax rates and brackets, 1909-2020

2018-2020 All taxable income 21 For tax years beginning after 2017, the Tax Cuts and Jobs Act (PL 115-97) replaced the progressive corporate tax structure with a fixed corporate tax rate of 21% . 1993-2017 First $ 50,000 15 The Revenue Reconciliation Act of 1993 raised the maximum corporate tax rate to 35% for corporations
taxable income greater than $ 10 million.
Corporations with taxable income greater than $ 15
million are subject to an additional tax of
3% of the surplus over $ 15 million, or
$ 100,000, the lesser of the two $ 50,000 to $ 75,000 25 $ 75,000 to $ 100,000 34 $ 100,000- $ 335,000 39 $ 335,000 – $ 10,000,000 34 $ 10,000,000 – $ 15,000,000 35 $ 15,000,000 – $ 18,333,333 38 Over $ 18,333,333 35 1988-1992 First $ 50,000 15 $ 50,000 to $ 75,000 25 $ 75,000 to $ 100,000 34 $ 100,000- $ 335,000 39 Over $ 335,000 34 1987 First $ 25,000 15 The 1986 Tax Reform Act (TRA86) established a new rate structure in effect for the 1988 tax year and made the rates for the transition year 1987 an average of the pre-TRA rates for 1986 and post-TRA rates for 1988. $ 25,000 to $ 50,000 16.5 A new “alternative minimum tax” (AMT) replaced the additional minimum tax, which entered into force in 1987. It required the calculation of an alternative measure of taxable income that reduced or eliminated many elements of tax preferences. The tax was 20 percent of the excess of this “alternative minimum taxable income” (AMTI) above $ 40,000. The $ 40,000 exemption has been reduced by 25 percent of AMTI’s excess over $ 150,000. The excess of AMT over ordinary tax could be carried forward as an ordinary tax credit in future years. In 1998, “small” companies (generally those with average gross revenues of less than $ 5 million) were exempt from AMT. $ 50,000 to $ 75,000 27.5 $ 75,000 to $ 100,000 37 The maximum capital gains tax rate was capped at 34 percent for 1987, which was to be the rate for the highest corporate tax bracket in 1988 and thereafter, according to TRA86. The maximum capital gain rate was raised to 35% when the highest tax rate bracket was increased in 1993. $ 100,000- $ 335,000 42.5 $ 335,000 – $ 1,000,000 40 $ 1,000,000 – $ 1,405,000 42.5 Over $ 1,405,000 40 1984-1986 First $ 25,000 15 $ 25,000 to $ 50,000 18 $ 50,000 to $ 75,000 30 The maximum tax rate on long-term capital gains was 28%. $ 75,000 to $ 100,000 40 $ 100,000 to $ 1,000,000 46 $ 1,000,000 – $ 1,405,000 51 Over $ 1,405,000 46 1983 First $ 25,000 15 Since 1983, professional incorporated firms (“personal service companies”) have been taxed on all taxable income at the corporate tax rate applicable to the highest income bracket. $ 25,000 to $ 50,000 18 $ 50,000 to $ 75,000 30 The maximum tax rate on long-term capital gains was 28%. $ 75,000 to $ 100,000 40 Over $ 100,000 46 1982 First $ 25,000 16 $ 25,000 to $ 50,000 19 $ 50,000 to $ 75,000 30 The maximum tax rate on long-term capital gains was 28%. $ 75,000 to $ 100,000 40 Over $ 100,000 46 1979-1981 First $ 25,000 17 $ 25,000 to $ 50,000 20 $ 50,000 to $ 75,000 30 The maximum tax rate on long-term capital gains was 28%. $ 75,000 to $ 100,000 40 Over $ 100,000 46 1975-1978 First $ 25,000 20 $ 25,000 to $ 50,000 22 Over $ 50,000 48 The holding period for the treatment of long-term capital gains on assets was extended from 6 months to 9 months in 1977 and to 12 months in 1978. The rate remained at 30%. 1971-1974 First $ 25,000 22 Over $ 25,000 48 The maximum tax rate on long-term capital gains has been raised to 30%. 1970 First $ 25,000 22.55 Includes 2.5% Vietnam War surcharge. Over $ 25,000 49.2 The maximum tax rate on long-term capital gains has been raised to 28%. 1968-1969 First $ 25,000 24.2 From 1969 to 1986, companies were also subject to an “additional minimum tax” on certain “tax preference” items (such as percentage depletion, accelerated depreciation) above a certain amount. For the 1969 through 1976 tax years, the tax was 10 percent of tax preferences over $ 30,000; after 1976, the tax was 15 percent on preferences exceeding the greater of $ 10,000 or ordinary income tax. Over $ 25,000 52.8 Rates include the 10 percent Vietnam War surcharge. 1965-1967 First $ 25,000 22 Over $ 25,000 48 1964 First $ 25,000 22 Over $ 25,000 50 1952-1963 First $ 25,000 30 From April 1, 1954 to calendar year 1969, the maximum tax rate on capital gains was 25%. Over $ 25,000 52 1951 First $ 25,000 28.75 These rates reflect a tax increase (for the Korean War) that took effect on March 31, 1951. The maximum tax rate on capital gains was also increased to 26%. Over $ 25,000 50.75 1950 First $ 25,000 23 A surplus profits tax was also in effect from July 1950 through the 1953 calendar year. The tax was 30 percent of an adjusted profit figure reduced by credits for the pre-war profit level. It was not deducted from income tax, but the sum of taxes on income and excess profits was capped at a given percentage of income (62% to 70%). Over $ 25,000 42 From tax year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25%. 1946-1949 Taxable income of $ 50,000 or less: These rates are the sum of the “normal tax” rates and the “surtax” rates, which in effect applied to slightly different definitions of taxable income. First $ 5,000 21 Next $ 15,000 23 Next $ 5,000 25 Next $ 25,000 53 From tax year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25%. Taxable income greater than $ 50,000 38 1942-1945 Taxable income of $ 50,000 or less: These rates are the sum of the “normal tax” rates and the “surtax” rates, which in effect applied to slightly different definitions of taxable income. First $ 5,000 25 Next $ 15,000 27 From tax year 1942, gains on the sale of assets held for more than 6 months (long-term capital gains) could be treated separately from other taxable income and taxed at a maximum rate of 25%. Next $ 5,000 29 Next $ 25,000 53 Taxable income greater than $ 50,000 40 1941 Taxable income $ 38,461.54 or less: These rates are the sum of the “normal tax” rates and the “surtax” rates, which in effect applied to slightly different definitions of taxable income. First $ 5,000 21 Next $ 15,000 23 Next $ 5,000 25 Next $ 13,461.54 44 Taxable income greater than $ 38,461.54 31 1940 Taxable income $ 31,964.30 or less: From June 1940 until the end of 1945, a profit tax in excess of the pre-war average earnings was also imposed. It has been taken into account, either as a deduction or as a credit, for income tax and other excess profit tax. First $ 5,000 14.85 Rates for 1940 include additional “defense tax” rates that are incorporated into regular rates for subsequent years. Next $ 15,000 16.5 Next $ 5,000 18.7 Next $ 6,964.30 38.3 Taxable income greater than $ 31,964.30, not exceeding $ 38,565.84: First $ 5,000 15.4 Next $ 15,000 16.9 Next $ 5,000 18.9 Next $ 13,565.84 36.9 Taxable income greater than $ 38,565.84 24 1938-1939 Taxable income $ 25,000 or less: First $ 5,000 12.5 Next $ 15,000 14 Next $ 5,000 16 Taxable income greater than $ 25,000 19 1936-1937 First $ 2,000 8 An additional surcharge ranging from 7 percent to 27 percent was imposed on retained earnings. More than $ 2,000, not more than $ 15,000 11 More than $ 15,000, not more than $ 40,000 13 Over $ 40,000 15 1932-1935 All taxable income 13.75 An additional “declared value” excess profit tax, based on profits exceeding a percentage of the value of the company’s shares, was in effect from 1933 to 1945. This was a deduction for the purposes of the company. ‘income tax. 1930-1931 First $ 3,000 0 Over $ 3,000 12 1929 First $ 3,000 0 Over $ 3,000 11 1928 First $ 3,000 0 Over $ 3,000 12 1926-1927 First $ 2,000 0 Over $ 2,000 13.5 1925 First $ 2,000 0 Over $ 2,000 13 1922-1924 First $ 2,000 0 Over $ 2,000 12.5 1919-1921 First $ 2,000 0 Over $ 2,000 ten 1918 First $ 2,000 0 Over $ 2,000 12 1917 All taxable income 6 An additional tax on “excess profits” and / or “war profits” was in effect from 1917 to 1922. It was allowed as a deduction for the calculation of income tax. 1916 All taxable income 2 1913 (March 1) -1915 All taxable income 1 1909-1913 (February 28) First $ 5,000 0 Over $ 5,000 1